Xcel Energy Proposes 13% Rate Increase for Minnesota Customers Over Two Years

(KNSI) — A public hearing is set for Tuesday morning to weigh in on Xcel Energy’s significant electric rate increases across the state.

The utility has filed a two-year rate plan requesting a $353.3 million increase for 2025, which is a 9.6% hike. That will be followed by an additional $137.5 million increase in 2026, representing a rise of 3.6%. Combined, the proposal would generate $490.7 million in additional revenue for Xcel Energy over the two-year period.

Xcel Energy cites several factors driving the proposed increases, including providing higher returns to investors, modernizing transmission and distribution infrastructure, investing in cleaner electricity generation and declining sales.

The rate changes would affect the monthly bills of both residential and business customers through service charges, energy charges, fuel charges, and taxes.

Tuesday’s public hearing is set for 11:30 a.m. at the Great River Regional Library’s downtown St. Cloud branch inside the Mississippi Room.

The Minnesota Public Utilities Commission is conducting public hearings through September 25th, where officials will present details of Xcel’s plan, and an administrative law judge will collect verbal comments for the public record. Those who are unable to attend the public meetings can still participate by emailing consumer.puc@state.mn.us, using an online form found here, or mailing written comments to:

Minnesota Public Utilities Commission,
121 7th Place East, Suite 350,
Saint Paul, MN 55101

All comments should reference docket numbers 24-320 and 24-321.

The review process will continue with evidentiary hearings scheduled for December 17th through the 19th. The public comment period closes December 30th, with the Commission’s final decision deadline set for July 31st, 2026.

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